Final answer:
Income is generally more evenly distributed in richer nations due to their higher levels of wealth and diversified economies. Less developed countries tend to have a more uneven distribution of income, which is linked to their less diversified economies and lower levels of economic development.
Step-by-step explanation:
Income distribution studies generally show that income is more evenly distributed in richer nations. The reason for this lies in the economic structures of these countries, which usually have a diverse mix of industries and a higher level of economic development compared to less developed countries. In richer nations such as Canada, Japan, and Australia, there is higher wealth to distribute, and this often results in a more equitable distribution of income across the population. By contrast, in less developed countries, including many in central Africa and South America, there is less wealth to distribute among a higher population, which typically leads to a more uneven income distribution. Additionally, the economic growth in these countries often lags in sectors that enhance productivity and income, such as a shift from agriculture to manufacturing, which is a key driver of income equality in wealthier nations. Therefore, the income is frequently more evenly distributed in economically developed countries where the economies have diversified beyond agriculture and have developed more productive sectors. This trend is supported by historical data showing increasing inequality among nations since the Industrial Revolution, with developed economies accelerating their GDP per capita substantially more than the world’s poorest economies.